Cathay Pacific 2004 Annual Report Download - page 67

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Cathay Pacific Airways Limited 2004 Annual Report 63
28. COMMITMENTS AND CONTINGENCIES
(a) Outstanding commitments for capital expenditure authorised at the year end but not provided for in the accounts:
Group Company
2004 2003 2004 2003
HK$M HK$M HK$M HK$M
Authorised and contracted for 7,218 3,865 1,193 919
Authorised but not contracted for 9 105 – –
7,227 3,970 1,193 919
Operating lease commitments are shown in note 9 to the accounts.
(b) Guarantees in respect of lease obligations, bank loans and other liabilities outstanding at the year end:
Group Company
2004 2003 2004 2003
HK$M HK$M HK$M HK$M
Subsidiary companies – – 1,523 916
Associated company 20 19 20 19
Staff 415 420 400 405
435 439 1,943 1,340
(c) The Company has under certain circumstances undertaken to maintain specified rates of return within the Group’s leasing
arrangements. The Directors do not consider that an estimate of the potential financial effect of these contingencies can
practically be made.
(d) The Company files tax returns in many jurisdictions and in certain of these the returns have remained in dispute for a number
of years. Provisions have been made to cover the expected outcome of the disputes to the extent that outcomes are likely and
reliable estimates can be made. However, the final outcomes are subject to uncertainties and resulting liabilities may exceed
provisions.
Notes to the Accounts – Supplementary Information